How can I eleminate my debts in 2007.?

Question

Without crazy schemes and debt consolidation programs. I have tried everything but the dabt continues to grow.

Answer 1

stop spending more then you can afford. pay for everything in cash if you dont have the cash for it you cant afford it.

Answer 2

If "your debt continues to grow" then in reality you have tried nothing very seriously. I would recommend you thoroughly review your behaviour. You are still (and probably have long been) spending more money than you actually earn!

Cut up all your credit cards. Pretend something awful happened that wan't your fault, but destroyed your credit, and now you just have to live with it. Oh well.


Give yourself a 25% pay cut. You will find a way to manage of 75% of your current income, and that 25% goes straight to debt. Pay off your smallest debt first (even if it isn't the highest rate, getting rid of it will happen soonest, and give you the confidence you can actually do this!), then the next smallest, and so on.

Meanwhile pay the minimums, or a little more, on everything else.

Get an extra job if you want to really speed things up, and pay 100% of that check to your debts.


Good luck.

Answer 3

Honestly it's not that hard. Definitely make a list of your debts, preferably in an Excel spreadsheet. With the balance and monthly payments.

I made a credit card management tool using Excel that may be helpful. I use it to manage my accounts.

If you're paying any credit card interest/finance charges, you should balance transfer those balances to 0% APR intro cards. That way every time you pay down those bills you're strictly paying off the debt, and no fees or interest.

Aside from that cut the fat. Stop wasting money on things you don't need. Stay at home or find hobbies that require no money like exercise, walking the dog, etc.

You'd be surprised how much we waste.

Find my debt management tool under the mortgage calculators page at http://www.thetruthaboutmortgage.com

Answer 4

First of all stop looking for a miracle, such as how can I pay 10 per month to pay off 1000 on loans in one year. Math has to work!
1. First of all make sure your debt stops growing. No matter what it takes.
2. Start paying debts off. If you owe say 1000 and an average interest you're paying is 15%, than to pay it off in 1 year, you will need roughly 1075 dollars, now divide it by 12 and that is how much you need to pay off every month to eliminate debt in one year. Basically the formula is as follow, if you are serious about paying it off in one year, the amount of interest you'll spend is about half of annual interest on the entire balance, so add it to your starting balance and pay off in equal installments.
Now, I suggest that you pay minimum balance on all loans, and pay maximum on loans with highest interest rate.
Please, remember there are no miracles, no one will help you if you are not determined. The debts must stop growing first. I don't care if you don't have enough for food, you pay debts first. A person can live without food for a few days. You will have more left for food, when you stop paying interest.
Sorry, no silver bullet!

Good luck.

Answer 5

Simple plan: (I agree w/ the daveramsey.com plan) here's a summary...
1. Get on a budget. (written down every month)
2. List all debts from smallest total to largest
3. Pay the minimum on all debts except the smallest.
4. Take all extra money left from budget and pay it to the smallest.
5. When smallest is gone, take all available money and apply it to the second debt.... wash, rinse, repeat.

You should protect yourself w/ a small emergency fund first ($1000). You'd hate to lose a car / water heater / furnace, etc, during your plan. Good luck.
It worked for me. It took 18 months and now I have no consumer debt except for my house.

Answer 6

Sit down and come up with a budget. Write down all your expenses and start eliminating expenses you don't need and cut spending. Make sure you can make more than you'll spend in a month. Than start putting that amount down on your debts. Put more down on the debts with higher interest rates. As you eliminate one debt put more on others. It may take some time but you can do it.

Answer 7

The poor pay three dollars for every dollar they spend on "premature" luxuries (luxuries that have been bought too early). When they buy the newest iPod, a home that is too large, or a new car every couple years they are spending more in interest then they are on the actual products. The poor work three of every five workdays to pay interest. Of every dollar a poor person earns almost 70 cents pays for interest on premature luxuries.

http://debtconsolidationmap.com/Debt-Makes-Rich-Richer-Poor-Poorer.htm

Answer 8

Bad credit is one of the worst problems to have... however there exists a solution.

I will hereby talk from my personal experience.

I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :

http://umgarticles.atspace.com/debt-consolidation.htm

if it helps kindly remember me in your voting!.. cheers!

Answer 9

How did you spend your money last year? I'd start by taking a look at where all your money went (i suspect you'll draw your own conclusions once you examine where all the money went).

Answer 10

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